HDFC cuts home loan rates

HDFC, the country’s largest home loan lender cut its floating rate home loans by 0.50% effective this Monday. We anticipated a rate cut in home loans but not this quick. This is really good news for home loan seekers whose cost of ownership is likely to get reduced with builders likely to add some more incentives to push sales.

The reduction will be on fresh loans and applicable to all disbursements up to October 31.However, there is no change in the fixed home loans rate, which remains at 13.25%.. HDFC cited reduced funding cost attributed to rate cuts.

I hope ICICI and other banks would follow suit shortly to remain in competition. I am expecting further rate cuts during the last quarter of the financial year. Lets hope so.

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